Selecting and negotiating with suppliers and service providers – 20 key things to consider
When people come to us for help in taking on new supplier partnerships and contracts, or just reassessing their current providers, they quite often ask: “What are the main things we need to consider?”
Well, obviously, it depends on what they are trying to do. But we thought it would be usful to list our top 20, in order of importance (more or less), based on our experience over the past 2-3 years:
- Financial stability
- Continuous cost reduction incentives
- Competitive, but comparable market rates
- Contractual flexibility
- Demonstrable references (credibility)
- Detailed Service Level Agreements
- Change Control (that is sufficient but not cumbersome)
- Client contract management
- Commercial and service benchmarking mid contract
- Contract exit provision
- Contractual exclusions
- Cultural fit
- Additional provider capabilities
- Providers call logging, management and escalation procedures
- Providers’ Disaster Recovery plan and testing
- Providers’ service management
- Reporting requirements
- Service credits
These are just a few of the key areas you need to pay close attention to, in selecting and negotiating with your service providers and suppliers, but we reckon they are the ones that turn up, time and time again, so they are worth thinking about before you start.
One reason they are important is this: if you don’t have a good working knowledge of these areas, negotiating them can be a costly learning curve, and – don’t forget - you will be living with the results for many years!
Our clients stopped struggling to cope on their own and came to eXceeding to help them achieve the outcomes they need for their business, without the wasted time, stress and unforeseen costs.
For further information on renegotiating with suppliers please visit our Renegotiation page
Email [email protected] or call 03333 555 111 for all enquires.